Correlation Between Zhejiang Qianjiang and Guangzhou Seagull
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By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Zhejiang Qianjiang and Guangzhou Seagull and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Zhejiang Qianjiang with a short position of Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and Guangzhou Seagull.
Diversification Opportunities for Zhejiang Qianjiang and Guangzhou Seagull
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Guangzhou is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen and Zhejiang Qianjiang is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Zhejiang Qianjiang Motorcycle are associated (or correlated) with Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Zhejiang Qianjiang i.e., Zhejiang Qianjiang and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and Guangzhou Seagull
Assuming the 90 days trading horizon Zhejiang Qianjiang Motorcycle is expected to generate 1.01 times more return on investment than Guangzhou Seagull. However, Zhejiang Qianjiang is 1.01 times more volatile than Guangzhou Seagull Kitchen. It trades about 0.05 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.0 per unit of risk. If you would invest 1,247 in Zhejiang Qianjiang Motorcycle on September 2, 2024 and sell it today you would earn a total of 402.00 from holding Zhejiang Qianjiang Motorcycle or generate 32.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Zhejiang Qianjiang |
| Guangzhou Seagull Kitchen |
Zhejiang Qianjiang and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Qianjiang and Guangzhou Seagull
The main advantage of trading using opposite Zhejiang Qianjiang and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang position performs unexpectedly, Guangzhou Seagull can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Zhejiang Qianjiang vs. Guizhou BroadcastingTV Info | Zhejiang Qianjiang vs. Shuhua Sports Co | Zhejiang Qianjiang vs. Ciwen Media Co | Zhejiang Qianjiang vs. Shanghai Broadband Technology |
| Guangzhou Seagull vs. Industrial and Commercial | Guangzhou Seagull vs. Kweichow Moutai Co | Guangzhou Seagull vs. Agricultural Bank of | Guangzhou Seagull vs. China Mobile Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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